Why The Justice Department May Lose Against Apple In Court

Posted Apr 12, 2012

Apple will most likely win the e-book lawsuit that the U.S. Justice Department filed against them according to several legal experts interviewed by CNET. Apple is a small player when it comes to the e-book market because Amazon.com owns about 90% of it.

“Strengthening a new competitor against an incumbent hardly sounds like a terrible outcome for consumer,” stated Geoffrey Manne in an interview with CNET. Apple is also just a distribution platform for the books. If the publishers had worked together in collusion, they might get in trouble. But Apple would not.

If a single publisher came up with a new scheme, they could have refused to sell any books to Amazon.com or anyone unless they bought into the model. It should not be considered illegal for Apple to come up with an idea to help their competitive position against Amazon.

“Third, it is not clear why this arrangement is bad if done by all major publishers simultaneously. If it has justifications for each acting alone, those justifications remain when they act together. Under pure competition we would expect gravitation to a single new model if it proves better overall than its rival. That could be just what is happening here. The cooperative efforts speed the industry toward a more sustainable business platform,” said NYU legal professor Richard Epstein.